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“They’re not manufactured surpluses but they are sustainable surpluses and I think that is very important. What we have now I hope is the foundations for that agenda of reform, whether it is public service reform, driving infrastructure and competitiveness or the business deregulation this state so needs."

Speaking on a panel with Institute of Public Affairs executive director John Roskam and Deutsche Bank chief executive Adam Boynton, Mr Wells was quizzed on dividend policy, interest rates, housing and traffic congestion. Mr Stevens said: “The business community expects more from Liberal-led governments.

“They expect a government to be prudent, expected to pay-down debt, reduce taxes and I think this budget sets the foundations."

Australian Medical Association Victorian president Harry Hemley thanked the government for a ­“fiscally responsible" budget, but questioned why it took $471 million in dividends from WorkCover.

He questioned whether that policy might affect return to work rates for injured workers.

Former senior Victorian Treasury official John Fitzgerald, who now works for KPMG, asked whether the government would consider driving “considerable" reform as seen in Europe and US economies as a result of the global financial crisis.

“Victoria hasn’t faced the same problems therefore hasn’t been challenged to make the same reforms," he said.

He asked if this budget would drive the reform needed to drive the state’s competitiveness.

Mr Wells declined to answer the question but Mr Boynton weighed in, saying “you should never waste a good crisis".

He added that fighting to hold the state’s AAA credit rating was worthwhile.

“The context of Australia’s states, being a triple-A or not being triple-A comes at more of a cost potentially these days than five years ago," he said.

“A triple-A credit rating isn’t just about what you have done today but it is about having insurance to deal with the potential shocks down the track.

“I think triple-A credit ratings are important not just about what you are doing today, but your ability to respond if you need to, to significant adverse shocks if they come.

“If your revenues are constrained you do need to hold back on expenditures."

School students at the breakfast also got to ask questions.

Hjalmar Lundin, a student from Belmont High School, near Geelong, asked Mr Wells how the government would make sure prices would not be too expensive for students like him to move out of home.

Speaking to reporters afterwards, Mr Wells said: “We understand there will be groups out there who are not happy with our budget. But it gets back to living within our means."

The Opposition Leader,
Daniel Andrews
, said the budget was mean-spirited.